Ryanair records €10 million loss

No-frills airline Ryanair said it lost just over €10 million in its third quarter, but traffic and revenues rose during the period.

The airline blamed a series of actions by air traffic control during the three month period, along with airport closures caused by bad weather. More than 3,000 flights were cancelled over the period, compared with 1,400 in the previous fiscal year.

The €10.3 million loss compares to €10.9 million shortfall in the same period a year earlier.

Total revenues grew by 22 per cent to €746 million over the quarter.

Traffic was up 6 per cent to 17 million, while average fares increased by 15 per cent and ancillary revenues grew 20 per cent.

Costs at the airline were also up, in part due to an increase of 14 per cent in flight hours and a 37 per cent hike in the cost of fuel. Ryanair has employed a fuel hedging strategy that sees the airline 90 per cent hedged for the fourth quarter at $750 per tonne, and 80 per cent hedged for fiscal year 2012 at an average price of $800 per tonne.

Chief executive Michael O'Leary described the loss as "disappointing".

He also criticised the Government travel tax, the DAA and the impact of the EU261 regulations, which he described as "discriminatory".

"It is discriminatory that the EU regulations for competing train, ferry and coach operators, exonerate these transport providers from liability during force majeure cases, yet they oblige airlines to pay these right to care costs in similar circumstances," he said. "Airlines should not be liable for cancellations and delays that are outside of their control."

The company said its outlook for the full year was largely unchanged, and would be towards the upper end of the previously guided range of a net profit after tax of between €380 million to €400 million.